Big Business This Week is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
TENTATIVE UAW-FORD DEAL
There has been a breakthrough in the six-week strike that has caused disruptions at the Big 3 automakers. The United Auto Workers union says it reached a tentative deal with Ford on Wednesday. It would mean a 25 percent general raise plus cost-of-living increases. That is a big jump from Ford's initial offer of 9 percent. The union, 57,000 members strong, still has to ratify the deal.
GM LOST ITS LICENSE
GM didn't see much return on their investments in tech this week. On Tuesday California pulled the license for the company's Cruise robotaxis to operate in San Francisco. The driverless vehicles are now considered too dangerous for the road – just two months after another government agency gave them the freedom to operate 24/7. Meanwhile, the company announced it is going to pull back on EV production because of slowing demand.
NEW MR. STANLEY
Morgan Stanley has named Ted Pick as the new CEO and Wall Street rejoiced. The 30-year veteran of the company has served as co-president for the last two years and has support from outgoing CEO James Gorman. Pick will officially take over on January 1. Morgan Stanley stock started the week down, but things turned around on the announcement Thursday.
META SUED
It was a week of highs and lows for Meta. On Tuesday, attorneys general from most of the country sued the social media giant for allegedly working to get kids hooked on Facebook and Instagram and contributing to the mental health crisis among young people. The company says it has been working to offer "safe, positive experiences online." There was a rosier outlook when the company released its latest earnings report on Wednesday, though. Ad revenue picked back up last quarter, which led to a jump in profits. Of course, the additional cash also came at the expense of thousands of workers who were laid off.
CHEVRON BUYS HESS
Chevron announced early in the week that is is purchasing Hess. With oil prices on the rise, leading companies are flush with funds and looking to invest. While Chevron will pay $53 billion in stock to close the deal, it isn't the biggest purchase in the sector this month. Exxon Mobil announced two weeks ago that it will pay about $60 billion for Pioneer Natural Resources.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
